Yuan exchange rate hits 6-year low
The People's Bank of China set the midpoint of the currency at 6.7008 against the US dollar, which is the weakest level since September 2010 and about 0.3 percent weaker than on Sept 30, the last trading day before the National Day holiday.
Analysts attributed the fluctuation to the strong volatility of other major currencies in the past week, especially the British pound, and rising market expectations of a possible interest rate increase by the US Federal Reserve by year's end.
The pound fell unexpectedly by more than 6 percent against the dollar on Friday.
“The offshore yuan, as a risk asset, cannot be divorced from the pound's impact,” said Wang Youxin, an economist at the Institute of International Finance, a think tank affiliated with the Bank of China.
Recent data raised expectations for a rate hike.